Mining company Kalahari Minerals Plc (KAH.L) said on Friday drilling at Husab Uranium project in Namibia showed higher uranium prospects than expected, sending its shares up as much as 6 percent.
Chemical assay results confirm massive mineralised system with multiple zones of high grade uranium mineralisation..., Namibia-focused Kalahari said in a statement.
The drilling update was released by Australia-based uranium explorer Extract Resources Ltd (EXT.AX) (EXT.TO), in which Kalahari holds a 39.6 percent stake. Extract's principal asset, Husab, consists of three known uranium targets - Ida Dome, Hildenhof and Rossing South.
With the results, Kalahari said it remained confident of the potential of Husab and the project being defined as one of the world's largest uranium prospects.
At Ida Dome, the results suggest that the resource will greatly exceed the 25.1 million pounds of uranium oxide reported last year, the company said.
Kalahari also said the resource statement from Rossing South Zone 2 would be at the higher end of its estimate of about 105 million pounds of uranium oxide.
On Jan 27, Extract had revealed an initial resource estimate of 108 million pounds of uranium oxide at Rossing South, which was considerably higher than its expectations.
Kalahari shares were up about 6 percent at 45.7 pence at 1000 GMT on the London Stock Exchange. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)© Thomson Reuters 2009 All rights reserved